Chapter One Introduction
The wine market is considered to be a constantly growing industry and a key player inthe global economy, export revenues and employment generation. It′s globally valued atUSD 304 billion and is expected to reach the USD 380 billion by the year 2022(Investopedia, 2016).The wine market is significantly huge and mainly constituted by one million smalland big wine markets around the world. The European Union countries, accounts for morethan 50% of share of the global wine trade and they are followed by North Americancountries. In order to be more specific, France, Italy, Spain and USA have lately becomethe largest producers and also consumers of wine in the entire world. Bearing in mind theimportance of the French wine brands who considered to be the 84% of world′s mostfamous brands (Productschap, 2015).The global wine market is driven by the consumption habits of wine, the changinglifestyles, high-medium incomes, rapid urbanization and popularity of wine throughoutsocial celebrations and aging population, as this range of customers prefer wine over otheralcohol drinks. Another important driver for the consumption that at the same timecontributes directly to the growth of the market, it′s the rise of the wine production that ishappening in developing countries and new markets. This change has affected negativelyin the wine consumption from traditional markets in comparison with past years, andaffected positively on the growth of the Asian markets (around 4 times more since the year2000) which account for over 16% of value in Asian-Pacific countries today (Investopedia,2016).
1.2 Current status
Having explained the background and bearing in mind that Spain is considered to beone important worldwide wine producer, it has been considered highly significant toconduct a deeper analysis of how a wine producer country like Spain sells its wines to theNetherlands. Furthermore, and related to the other country of study, the Netherlands, itmust be said that is one of the biggest wine importers around the globe and one of the mostimportant key players within the European market.It′s for this reason why along this paper work will be deeply analyzed how the Dutchmarket is starting to pay more attention to the wine consumption. This topic is connected tothe fact that the Netherlands is a country where the production of wine is very low, forreasons such as climate conditions that provokes an increase of the need for exporting winefrom abroad, becoming an attractive country for worldwide wineries.As it shows, it can be already stated that exists a positive scenario for the startup ofthis business project, however, it′s important for the business to conduct a deep research ofthe situation of the environment, market and the current competitors in order to assess afuture success for this company.
Chapter Two Literature Review
2.1 Literature review
The literature review will help the readers to evaluate and analyze the information thatthey will find on the report related to the project. It will describe and clarify the body ofknowledge with the goal of determining what′s known and unknown about the topicsrelated to the project. In addition, it must be bared in mind that exists a lack of studies andinformation related to the topic of the project, fact that with the development of the venuewill be solved. The literature review stands on the following points: wine-making process,definitions, wine consumer behavior and technology.For the development of the project, it′s necessary to import wines from wineriescoming from other countries. But how wineries make wine? Throughout the followingconcepts divided in five stages:1.Harvesting: The process in which the grapes are picked and collected.2. Crushing and Pressing: On the grapes are selected and sorted, the wine makercrushes and presses the grapes to separate the juice from the skin, solids and seeds of thegrapes (this is for white wine, in the case of red wine, it′s left in contact with the skins ofthe grape to acquire color and flavor).3. Fermentation: Along this process, the sugar coming from the grapes is convertedinto alcohol to get dry wine. For getting sweet wine, wine-makers sometimes stop theprocess before all the sugar is converted. The fermentation process usually takes a max of10 days.4. Clarification: This stage consists on removing the solids, tannins, proteins, andother dead cells.
Along this chapter will be explained the theory of the models that has been used toimplement the project.PESTEL AnalysisA PESTEL analysis is a tool used by companies to study and track the environment. Ithelps to evaluate competitors, the market and how is the company itself performing. Incase of being a new company who is about to launch a new project, product or service, thePESTEL helps to have a whole picture of the environment before launching the project tothe market.PESTEL stands for: Political, Economic, Social, Technological, Legal andEnvironmental. Political. These factors help to determine the length to which a government mayinfluence a specific industry. I.e.: Fiscal policy, tax policies, trade tariffs, etc. Economic. Features that describes the economy′s performance that impacts acompany in a direct way. I.e.: Economic growth patterns, inflation rate, unemployment rate,interest rates, etc. Social. These factors are associated with the social environment of the market. I.e.:Cultural and demographic trends, population analytics, etc. Technological. Features that pertain to innovations in technology that may affectthe operations of the industry and the market either in a positive or negative way. I.e.:R&D, automation, etc.
Chapter Three The Opportunity and Innovations .......... 26
3.1 The opportunity........... 26
3.1.1 Market research....28
3.1.2 The gap........31
3.2 Industry Analysis ........ 34
3.2.1 Current competitive situation + PEST .....34
3.2.2 Projected strategic moves by current players....39
3.2.3 Changes brought to the competitiveness of the industry by the new venture.........40
3.3 Innovations brought to the industry by the new venture............ 41
3.4 Strategy ..... 42
3.4.1 Sources of differentiation and competitive advantage........46
3.5 Ethics and sustainability ...... 50
Chapter Four The company and the team .... 52
4.1 Legal structure ............ 52
4.2 Ownership .......... 53
4.3 The advisory board ..... 56
4.4 The management team ......... 57
Chapter Five Marketing Plan ..... 62
5.1 Identification of customers ........... 62
5.2 Number of potential customers and potential sales revenues .... 64
5.3 Requirements of various customer segments........... 66
Chapter Five Marketing Plan
5.1 Identification of customers
To build the marketing strategies in an efficient way, it is important to identify thecustomers that the venue would have and their characteristics.Due to the conduction of a survey in the city of Amsterdam with a sample size of 50interviewed (conducted throughout a summer week on Thursday, Friday and Saturday, asthey were the weekdays that people usually go out of home to have lunch/dinner or justgrab a glass of wine with friends), it has been easy to get an idea of whom would be thepotential customers of the venue. Due to the results of the survey, 55% of the customerswould be women while 45% would be men. Furthermore, as it was expected most of thecustomers would be Dutch. In relation with the results examined in the survey 65% wereDutch, 15% Spanish, 10% French, 10% from other countries, as it was previously stated inchapter 3, Dutch and Spanish customers would be the main customer target.It was also considered to ask the interviewed when do they usually consume wine themost in order to have an idea of the quantity of wine and food necessary, when will thevenue expect more customers, which days of the week will be needed more or lessemployees at the venue, when will the delivery need to be done, among others.
After having critically analyzed all the information that the creator of the project hasbeen able to collect, it is interesting to summarize the main points that have lead us to keepgoing with the implementation of the venue because, thanks to them, it has been provedthat the venue would be a success. As shown, the Netherlands is a good country to invest due to its political andeconomic situation. It gives a lot of opportunities to those foreign investors seeking fornew opportunities in this market, making itself an attractive country for them. The rise in the wine consumption is real and proved, becoming an important andprofitable business in the country. The studies and data collected, relays on the fact that is a good moment for foreignwines to introduce or even increase its presence in the Dutch market. As has beingpreviously stated, the French wine consumption has recently decreased and the market isgiving opportunities to other wine exporters, with different tastes and more innovativeways of doing business. It exists a change on the society as the city of Amsterdam has extended itspopulation and as consequence the way to socialize. Nowadays there are more citizensgoing out for dinner, to celebrate especial occasions, to enjoy a glass of wine with friends,among others. This fact has let entrepreneurs to start new businesses such as bars andrestaurants, and actually, due to the high number of expats, there is a necessity to adaptwhat those bars and restaurants offer, reason why there are many Italian, Spanish, Greekrestaurants.